The Hospital Profit Transparency and Fairness Act
Hospitals and large health care corporations are putting profits before patients with CEO’s making millions while patients and communities serviced by those hospitals are being put at risk.
Most hospitals in Massachusetts receive more than half their revenues from taxpayers. Yet there is no way for the public and policy makers to accurately understand how those taxpayer dollars are being allocated and spent.
While these taxpayer subsidies are intended to provide health care services to our communities, too many of these hospital corporations have been cutting services and staff, while posting enormous profits and/or hiding those profits in off-shore accounts undisclosed to the public.
We now have a hospital system of “haves and have nots” that has resulted in the loss of essential services for some communities, particularly those servicing the poor and most vulnerable.
Meanwhile, these same corporations are paying their CEOs enormous seven figure salaries and compensation packages when the research shows there is absolutely no correlation between CEO compensation and the quality and safety of care these hospitals provide.
What it does
The Hospital Profit Transparency and Fairness Act will require hospitals to be transparent about their financial holdings and to limit and claw back excessive profits to ensure taxpayer dollars are dedicated exclusively to safe patient care and necessary services for all communities in the Commonwealth. Specifically:
- It requires any hospital receiving taxpayer dollars to disclose all financial assets including those held in offshore accounts.
- It asses a clawback penalty on any hospital that provides its CEO with an annual compensation package more than 100 times the compensation of the hospital’s lowest paid, full time employee.
- It assesses a claw back penalty for any hospital that has a profit margin beyond 8 percent.
- It directs any funds realized from the claw back penalties to a new fund that will be used to preserve and ensure access to essential health care services.
- It establishes a new fund called the Medicaid Reimbursement Enhancement Fund that will be administered by the MA Health Policy Commission and funded by the claw backs mentioned above.
Get the facts